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Vuzix terminates Atomistic funding -3

22:45 03-Jul-24


Vuzix has officially ended Atomistic funding as I tipped with the LCoS news almost two weeks ago.  As a result it will write off $32.2M.  To put that in perspective, the company had $12.1M in total revenue last year and is forecast to bring in $11.6M this year.  It had about $16.5M in cash on the balance sheet at the end of the first quarter.

I had always characterized this deal as a risky bet-the-company move.  If management realizes all its cost reduction goals, that gives it maybe a year without raising further capital.  As I wrote when I sounded that alarm bells over a year ago:
Management has already shown willingness to massively dilute shareholders, even at mid-single digit prices.  However, my guess is that there is likely to be a world of difference in the market environment for doing so over the next year or two versus what management experienced in 2020 & 2021.
I'll go ahead and do what I contemplated then by discontinuing coverage and making the VUZI section public, even though the company and stock could easily hang around for years to come, just as MVIS has.